Crowdfunding has become a popular way to raise funds for everything from new business ventures to charitable causes. Platforms like Kickstarter and GoFundMe make it easy to reach a wide audience and gather financial support, but if you’re organizing a crowdfunding campaign, it’s essential to understand the tax obligations that come with those contributions. In some cases, money raised through these platforms may be subject to income tax, requiring careful record keeping and reporting.

Tax season often brings with it a sense of profound dread, a towering pile of paperwork, and the nagging fear you may have overlooked essential deductions. What if this year could be different, though? If you keep well-systemized records (paper and digital) from the start of the year, you can avoid the unnecessary chaos of disorganized and incomplete files at tax time. The secret of transforming tax preparation into a manageable task? Great recordkeeping!